Off-Shore Funds - What's Left?

Article Abstract:

In the late 1960s, offshore fund investment began to grow for United Kingdom citizens abroad. This investment type avoided taxes, constraints, and penalties while having the advantages of investment skills. Most of the characteristics of the offshore funds are similar to the authorized unit trust, or the American mutual fund. There are a few categories of funds including deposit, managed currency, fixed interest, equity and commodity funds. The United Kingdom residents living in the United Kingdom have no advantage overseas. For non- United Kingdom and United Kingdom residents, non- domiciled, off-shore fund investments are the main source. The change in tax treatment beginning January 1, 1984 will not affect the present tax position of United Kingdom residents investing in Channel Islands based funds. These groups are seeking distributor status for their funds. But investors in funds will have little incentive to change status, and investments will be affected.

Tax consultants

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The Cost of Pension Provision for the Self-Employed

Article Abstract:

FA 1980 has given a boost to the pension provision for partners and the self-employed. FA 1982 has increased the rate of minimum contributions. The basic percentage allowance is increased to seventeen and a half per cent. Higher rates of relief are available to the older contributor. Payment of contributions at the maximum tax- deductible rates will be necessary if the benefits under Section 226 is to be the main source of income in retirement. These contribution rates are still inadequate for older individuals who have been self-employed for a substantial period and whose pensions have been purchased by contributions paid when the maximum allowable percentages were lower and when earnings ceiling applied. There need to be made some supplementary arrangements for those who were unable in the past to make the same level of contribution that newly appointed partners may now make.

Compensation and benefits, Self-employed persons, Self employed persons, Partnership, Partnerships

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Interest on Eurobonds and Pension Funds and LIFFE

Article Abstract:

Tax legislation in the United Kingdom contains tax relief provisions in certain circumstances for companies which pay interest without deduction of tax. Serious problems are raised when a group wishes to raise finance by issuing Eurobonds. Clauses to deal with these problems have been delayed and are expected to be included with the 1984 Finance Bill. Pension funds approved by Inland Revenue are exempt from tax on gains realized by investments. Transactions on the London International Financial Futures Exchange (LIFFE) would be taxed under the current tax laws, unless the contract goes to delivery, which is not common. A new clause, announced on May 5, 1983, would change the futures law. It is expected to be included in the 1984 Finance Bill.

Interest rates

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